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Apple Tree International began operations in 2021. Sometimes Apple Tree International sells used warehouses on an installment basis. In those cases, Apple Tree International reports
Apple Tree International began operations in 2021. Sometimes Apple Tree International sells used warehouses on an installment basis. In those cases, Apple Tree International reports income in its income statement in the year of the sale. In its income tax return, though, Apple Tree International reports installment income by the installment method. Installment income in 2021 was $210,000, which Apple Tree International expects to collect equally over the next three years. The tax rate is 25%, but based on an enacted law, is scheduled to become 30% in 2023 Apple Tree International's pretax accounting income from the 2021 income statement was $834,000, which includes $44,000 of interest revenue from an investment in municipal bonds. There were no differences between accounting income and taxable income other than those described above. Required: 1. Prepare the appropriate journal entry to record Apple Tree International's 2021 income taxes. Show calculations. 2. What is Apple Tree International's 2021 net income? (For both requirements, round your answers to 2 decimal place.) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Apple Tree International's 2021 income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in thousands.) No Transaction General Journal Debit Credit 1 1 Income tax expense 204,500.00 Deferred tax liability 59,500.00 Income tax payable 145,000.00 (Required 1 Required 2 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is Apple Tree International's 2021 net income? (Enter your answer in thousands.) $ Net Income 629.000.00
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